Calculate the present value (PV ) of an annuity stream of 5 annual cash flows of $1,200, with the first cash flow received in one year

Calculate the present value (PV ) of an annuity stream of 5 annual cash flows of $1,200, with the first cash flow received in one year, assuming a discount rate of 10%.

Expert Solution

present value (PV ) of a cash inflow	4,548.94
Statement showing Cash flows
Particulars	Time	PVF 10%	Amount	PV
Cash Flows	1.00	0.9091	1,200.00	1,090.91
Cash Flows	2.00	0.8264	1,200.00	991.74
Cash Flows	3.00	0.7513	1,200.00	901.58
Cash Flows	4.00	0.6830	1,200.00	819.62
Cash Flows	5.00	0.6209	1,200.00	745.11
Present value of Cash flows				4,548.94

jeff jeffy answered 2 years ago

Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of...

Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 25-year annuity is $1.9 million and the annuity earns a guaranteed annual return of 13 percent. The payments are to begin at the end of seven years.

What is the Net Present Value of the following cash flow stream? Year Cash Flow 0...

What is the Net Present Value of the following cash flow stream? Year Cash Flow 0 -$489 1 $363 2 $192 3 $161 4 $256 Assume an interest rate of 13% Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. If your answer is negative, enter your answer as a negative number rounded off to two decimal points.

15- For the following annuity, calculate the annual cash flow. PV:73000 Years:24 Interest Rate:9% Annual Cash...

15- For the following annuity, calculate the annual cash flow. PV:73000 Years:24 Interest Rate:9% Annual Cash Flow: 16- If you make a deposit of the amount below at the end of each year for the number of years at the interest rate specified, how much money will you have in the account at the end of that time?(Do not round intermediate calculations, round answer to two decimal places, i.e. 32.16) Payment:23000 Years:19 Interest Rate:9% Annual Cash Flow: 17- Curly's Life Insurance...

Calculate the present value of the following amounts assuming that the cash flow is received at...

Calculate the present value of the following amounts assuming that the cash flow is received at the end of each specified period: 211 Situation Cash Flow Discount rate End of period( pear year) Frequency A $15,000 10% 8 Bimonthly B $20,000 13% 12 Semiannual C $6,000 9% 10 Quarterly D $50,000 7% 50 Annual E $8,500 7% 15 Quarterly I appreciate if you can explain me step by step. Thank you.

⦁ The present value of $1,000 received at the end of year 1, $1,200 received at...

⦁ The present value of $1,000 received at the end of year 1, $1,200 received at the end of year 2, and $1,300 received at the end of year 3, assuming an opportunity cost of 7 percent, is

What is the present value of a perpetual stream of cash flows that pays $5 comma...

What is the present value of a perpetual stream of cash flows that pays $5 comma 500 at the end of year one and the annual cash flows grow at a rate of 3% per year indefinitely, if the appropriate discount rate is 14%? What if the appropriate discount rate is 12%? a.If the appropriate discount rate is 14%, the present value of the growing perpetuity is $_____. (Round to the nearest cent.) b.If the appropriate discount rate is...

PV of a Growing Annuity An investment offers the following cash flows: $1000 in one year,...

PV of a Growing Annuity An investment offers the following cash flows: $1000 in one year, followed by 9 more annual payments (years 2-10) that grow at a rate of 7% per year. If your opportunity cost is 8% per year, the PV today of this stream of cash flows is $______________. Margin of error for correct responses: +/- $.05.

Find the present value of the following cash flows. A perpetual stream of consecutive annual payments...

Find the present value of the following cash flows. A perpetual stream of consecutive annual payments (made at year-end) of $800, which starts at the end of year 5 and grows by 6% per year forever. Discount rate is 10%.

Consider an annuity consisting of three cash flows of $8,000 each. If the interest rate is 6%, what is the present value (today) of the annuity if the first cash flow occurs

Consider an annuity consisting of three cash flows of $8,000 each. If the interest rate is 6%, what is the present value (today) of the annuity if the first cash flow occurs:a) Todayb) One year from todayc) Two years from todayd) Five years from today

Calculate the present value (PV ) of a cash inflow of $500 in one year, and a cash inflow of $1,000 in 5 years, assuming a discount rate of 15%.

Question